Provider Prudential Product The Flexible Income Drawdown Plan, incorporating:- - Pension Res...
The Flexible Income Drawdown Plan, incorporating:-
- Pension Reserve (unvested units)
- Income Drawdown (vested units)
Clients can either purchase full Drawdown or operate Phased Retirement by moving gradually from Pension Reserve to Income Drawdown (or to a conventional annuity). The FIDP forms part of the Prudential's Flexible Retirement Income Account (FRIA), a personal pension "umbrella" incorporating both FIDP and the Flexible Lifetime Annuity (FLA).
Type - Executive or Personal
Commission basis of this product option
3% x total transfer (excluding any transfer into non insured assets) plus 0.5% payable on full fund value excluding any non insured assets.
Minimum/Maximum age attained at entry
The minimum age at entry is 50/The maximum age at entry is no later than the 75th birthday of the Member.
There is no minimum term. The value of the account can be used to purchase an annuity (FLA or other) at any time.
Minimum initial fund value (£)
The minimum initial contribution is £100,000 including any tax free cash.
Minimum additional single premium/transfer value accepted (£)
The minimum additional contribution is £2,500.
Policy fee/One-off installation fee (£)
There is no policy fee/There is no installation fee.
Initial charge incorporated in the bid/offer spread
No bid/offer spread will apply.
Annual fund management charge for internal fund links (% per annum)
Unitised With-Profits Fund (Prudential Assurance Company) 1.00%
Prudential M&G Managed Growth Pension 0.80%
Prudential M&G Corporate Bond Pension (Series 2) 0.80%
Prudential M&G High Interest Pension 0.80%
Prudential M&G Long Dated Sterling Bond 0.80%
Prudential M&G Gilt and Fixed Interest 0.80%
Prudential M&G High Yield Corporate Bond 1.25%
Prudential M&G British Opportunities 1.00%
Prudential M&G Recovery 1.00%
Prudential M&G American 1.00%
Prudential M&G European 1.00%
Prudential M&G South East Asia 1.50%
Prudential M&G Japan 1.50%
Prudential M&G International Growth 1.00%
Prudential M&G Smaller Companies 1.00%
Scottish Amicable Property Fund 0.80%
Additional fund management charge for external fund links (% per annum)
Externally Managed Funds:
Schroder Managed 1.025%
Schroder International 1.025%
Newton Managed 1.025%
Newton UK Equity Income 1.025%
Phillips & Drew Managed (UBS Global Asset Management) 1.025%
Phillips & Drew UK Equity (UBS Global Asset Management) 1.025%
Perpetual Managed (INVESCO Perpetual) 1.225%
Perpetual UK Equity (INVESCO Perpetual) 1.225%
Merrill Lynch Managed 1.025%
Charge applied when drawdown commences (£)
There is no drawdown fee.
Allocation rates (%)
The allocation rate is 99% less the rate of initial commission taken (3%).
Number of fund links available
There are 25 fund links available - 16 internally managed and 9 externally managed funds.
Unitised with profits fund available
Unitised With-Profits Fund (Prudential Assurance Company)
Unit linked insurance funds available
There are three lifetime investment strategies to choose from. The strategies available are:
Each strategy offers a different balance of potential investment return and risk, which is set by the mix of investments held. The Lifetime Investment Strategy funds are:-
- Unitised With-Profits Fund (Prudential Assurance Company)
- Prudential M&G Managed Growth Pension
- Prudential M&G Corporate Bond Pension (Series 2)
The investment risk of each strategy reduces as a member gets older as the mix between the different investment funds held are re-balanced each year. The lifetime Investment Strategies have been designed to run to age 90 in connection with the FLA.
Funds Managed By Prudential:
Prudential M&G High Interest Pension
Prudential M&G Long Dated Sterling Bond
Prudential M&G Gilt and Fixed Interest
Prudential M&G High Yield Corporate Bond
Prudential M&G British Opportunities
Prudential M&G Recovery
Prudential M&G American
Prudential M&G European
Prudential M&G South East Asia
Prudential M&G Japan
Prudential M&G International Growth
Prudential M&G Smaller Companies
Scottish Amicable Property Fund
Externally Managed Funds:
Newton UK Equity Income
Phillips & Drew Managed (UBS Global Asset Management)
Phillips & Drew UK Equity (UBS Global Asset Management)
Perpetual Managed (INVESCO Perpetual)
Perpetual UK Equity (INVESCO Perpetual)
Merrill Lynch Managed
Self investment facility available
Assuming the member has a minimum investment of £100,000 in insured funds, the balance may be directly invested using the SIPP facility.
Charges for administration of non insured assets will be deducted directly from the cash account or by disinvesting investments (on a priority basis agreed with the member) if insufficient cash is available.
The charges set out below are reviewable:
SIPP Set Up Fee - £290 is deducted as soon as the first investment in non-insured assets is received.
SIPP Annual Fee - £290 per annum is deducted annually in advance (in addition to set up fee in first year) this increases to £455 if the value of the insured assets fall below £100,000.
SIPP Investment Transaction Fees - There is a charge of £30 per member initiated investment transaction up to a maximum of £300 per annum.
SIPP Income Withdrawal Fees - There is a charge of £60 for establishing income withdrawal and then £120 per annum annually in advance (i.e. £180 in the first year).
SIPP Annuity Fee - £60 is charged for annuity purchase.
SIPP Ad Hoc Valuation Fee - £60 is charged for each ad hoc valuation requested.
SIPP Property Charges - Additional fees relating to property investment that may be incurred are:-
- Valuation fees; Legal fees; Stamp Duty; Land Registry Fees; Lenders Mortgage Fee
Maximum number of links
The maximum number of fund links is 19.
Minimum premium per fund/Minimum residual fund after switching (£)
Minimum holding in one fund:-
- Under Lifetime investment strategies, no minimum fund holding will apply.
- Under active management, the minimum holding in an individual fund is £2,500.
- Under SIPP, no minimum holding will apply.
Number of free switches per year
First 6 switches per policy year are free.
Charge per fund switch (£)
Thereafter each switch will be £25. This charge is reviewable. For this purpose a switch is an instruction to sell units in one or more funds to use to buy units in another fund or funds.
Permitted frequencies for income withdrawal
Monthly, quarterly, half yearly and annually. All may be in arrears or in advance. Ad hoc amounts may be taken within GAD limits on the normal monthly payment date.
Income withdrawal from specific funds
Terms on early retirement
There is no penalty for early retirement.
Death benefit basis
Lump Sum Death Benefit
For unopened segments, the death benefit will equal the bid value of units payable under the terms of the discretionary trust - this will normally be tax-free.
Number of segments available
Phased retirement permitted
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation